OpenAIs

Oversight chair seeks information from OpenAI’s Sam Altman about potential financial conflicts

The chair of the House Oversight Committee has sent a letter to OpenAI Chief Executive Sam Altman requesting information about potential conflicts of interest between Altman’s personal investments and his operation of the company.

The letter, sent Friday, comes amid a high-stakes legal battle currently playing out in an Oakland federal courtroom between one-time partners Altman and Elon Musk, the world’s richest man, who in 2015 co-founded the AI company best known for creating ChatGPT.

The company was first established solely as a non-profit corporation and the letter sent to Altman by Rep. James Comer (R-Ky.), the Republican chair of the Oversight committee, indicates that the committee is “investigating potential conflicts of interest involving capital from nonprofit corporations invested in startups and other for-profit companies.”

Comer has requested by May 22 a briefing from the company official responsible for oversight of potential conflicts involving company officers and directors, including Altman, as well as all documents related to conflict of interest policies and guidance for those executives.

While OpenAI was created as a non-profit designed to responsibly harness the power of the emerging artificial intelligence technology, the company created a for-profit subsidiary in 2019 and three years later released ChatGPT, which jumpstarted widespread adoption of the technology.

Musk, the chief executive of Tesla, left Open AI’s board in 2018, one year before the creation of the for-profit arm. He is arguing that Altman and another co-founder, Greg Brockman, betrayed the original mission of the non-profit organization, driven by their desire to “cash in” on the technology.

Musk added Microsoft, a significant investor in OpenAI, to the lawsuit in 2024. OpenAI is rumored to be gearing up to go public later this year or early next, and was recently valued at $852 billion.

Musk has said that he invested $38 million in the OpenAI non-profit, but he does not stand to benefit from a potential OpenAI public offering.

He created a rival company xAI in 2023 that was later folded into his company SpaceX

In the lawsuit, Musk is seeking $150 billion in damages, for Altman to be removed from the company and for the company to be fully returned to its non-profit status.

Musk’s complaint also alleges that Altman engaged in self-dealing by directing OpenAI to pursue deals with companies in which he also held a personal stake, including nuclear fusion power company Helion.

Comer’s letter cites reporting that Altman’s pursuit of a Helion deal, which is still ongoing, would come at a lofty valuation of the power-company, boosting the company’s worth, and the value of Altman’s investment.

Altman was briefly forced to step down from leadership of OpenAI in 2023 in part due to concerns about potential conflicts between his personal investments and his operation of the company, but was soon reinstated.

While the company’s board created an audit committee to investigate the potential conflicts of Altman and other officers, the findings were never disclosed.

Comer has requested that Altman turn over all documents and communication related to that audit committee.

Representatives for OpenAI did not immediately respond to requests for comment.

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OpenAI’s Sam Altman apologises over failure to report Canadian mass shooter | Technology News

Tech firm suspended mass shooter’s ChatGPT account before attacks, but did not inform law enforcement.

OpenAI CEO Sam Altman has apologised over his company’s failure to warn authorities about the concerning online activities of a teen who went on to commit one of Canada’s worst mass shootings.

Jesse Van Rootselaar, 18, went on a shooting spree in Tumbler Ridge, British Columbia, on February 10, killing eight people.

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The victims included Rootselaar’s mother and half-brother, and five students at the remote community’s secondary school.

Rootselaar, who was born male but identified as female, died of a self-inflicted gunshot wound.

OpenAI said after the attacks that Rootselaar’s ChatGPT account had been flagged internally the previous June for misuse “in furtherance of violent activities”, resulting in its suspension.

The San Francisco-based AI company said at the time that it had not informed authorities, as Rootselaar’s usage of the chatbot had not met the threshold of posing a credible or imminent threat of harm to others.

In a letter shared on Friday by the Tumbler RidgeLines news site and British Columbia Premier David Eby, Altman acknowledged that OpenAI should have alerted law enforcement to Rootselaar’s suspension.

“I am deeply sorry that we did not alert law enforcement to the account that was banned in June. While I know words can never be enough, I believe an apology is necessary to recognize the harm and irreversible loss your community has suffered,” Altman wrote.

“I reaffirm the commitment I made to the Mayor and the Premier to find ways to prevent tragedies like this in the future,” Altman added.

“Going forward, our focus will continue to be on working with all levels of government to help ensure something like this never happens again.”

Altman’s statement of regret came after Eby said last month that the tech CEO had agreed to apologise to the Tumbler Ridge community over OpenAI’s failure to flag Rootselaar as a threat.

In his letter, Altman said Eby and Tumbler Ridge Mayor Darryl Krakowka had conveyed “the anger, sadness, and concern” being felt in the community in their discussions.

“We agreed a public apology was necessary, but that time was also needed to respect the community as you grieved. I share this letter with the understanding that everyone grieves in their own way and in their own time,” Altman wrote.

“I want to express my deepest condolences to the entire community. No one should ever have to endure a tragedy like this. I cannot imagine anything worse in this world than losing a child.”

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